Landis+Gyr Continues to Grow Thanks to Global Footprint

ZUG, Switzerland, May 14, 2012 /PRNewswire/ — Landis+Gyr, the world's leading provider of energy management and advanced metering solutions, was able to sustain increased year-over-year sales levels again despite a challenging global economic environment in financial year 2011. Very significant growth of 26% in the Asia-Pacific coupled with 7% growth in EMEA more than offset the 4% decline in the Americas region. Total sales increased 4% reaching a record USD 1,598 million (2010: USD 1,533 million).

In financial year 2011, Landis+Gyr, now an independent growth platform within the Toshiba Group, further strengthened and expanded its product offering of leading edge products in all regions, with a special emphasis on meeting smart grid opportunities.

The Group sales performance once again displayed the benefit of Landis+Gyr’s global business footprint as smart meter deployments worldwide continue to progress, though at a staggered pace. The growth in Asia Pacific derives from two major smart metering contracts with CityPower/Powercor and SP AusNet in Australia, whereas North America experienced the conclusion of some of the region’s first major deployments, such as California’s Pacific Gas & Electric Company, while new contract wins, such as Canada’s Hydro Quebec, secured regional order entry at an all-time high, but will not begin revenue contribution until later this year. Of the total sales achieved by the company globally 47% were attributable to the Americas, 35% to the EMEA region (Europe, Middle East and Africa), 17% to the Asia-Pacific (previous year: 51%, 34% & 14%).

Notwithstanding the year-over-year growth in EMEA, the shift towards smart grid infrastructure has not yet fully materialized. Despite good progress with British Gas in the UK, Iberdrola in Spain and French ErDF, regional economic difficulties resulted in the delay of other infrastructure projects and limited 2011 sales growth outside of the UK. As a consequence, tight cost management and the timing of R&D investments become crucial. Nevertheless the mandated smart metering roll-out of approximately 200 million smart electricity meters throughout all EU member states by 2020 will allow for solid future growth in EMEA.

Andreas Umbach, Chief Executive Officer of Landis+Gyr, commented: “In the 2011, the Group experienced some huge milestones. In addition to the record sales level, major new contract awards and increased R&D investment–now at 7% of sales, the biggest news was the change in ownership to Toshiba. Together with our new owners we will now look to capture the smart metering opportunity in Japan. In a joint effort we will further expand our utility offerings to realize the vision of becoming the global leader in the Smart Community business as the continuing need for overhaul and improvement of the electricity grids globally, coupled with the significant need for improved energy efficiency, will further drive growth for the industry and Landis+Gyr.”

Attractive growth potential looking ahead
The concept of energy efficiency, often referred to as the fifth fuel (beside coal, oil & gas, nuclear and renewable resources), is currently the subject of discussion among institutions worldwide.

Smart metering solutions are expected to revolutionize energy management and grid reliability offering. At the same time, more information, expanded choices, simpler and smarter management of energy use combined with a reduced environmental impact are provided to consumers. “Together with Toshiba we will provide cutting-edge technologies, intelligent products and smart solutions which will allow energy utilities to build smart grids and enable consumers to live in a smart community”, summarized Andreas Umbach.

Key figures FY2011

in million USD

FY 2010

FY 2011

Change

Backlog

2,391

2,467

+3.2%

Sales

1,533

1,598

+4.3

R&D Investment

101

111

+9.5%

Headcount

5,139

5,520

+1.4%

About Landis+Gyr

Landis+Gyr is the leading global provider of integrated energy management products tailored to energy company needs and unique in its ability to deliver true end-to-end advanced metering solutions. Today, the Company offers the broadest portfolio of products and services in the electricity metering industry, and is paving the way for the next generation of smart grid. With annualized sales of US$1.6 billion, Landis+Gyr, an independent growth platform of the Toshiba Corporation (TKY:6502) and 40% owned by the Innovation Network Corporation of Japan, operates in 30 countries across five continents, and employs 5,000 people with the sole mission of helping the world manage energy better. More information is available at www.landisgyr.com

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